SMSF updates from Mid-Year Economic and Fiscal Outlook 2012-13

Key new tax and superannuation measures announced by the government include:

1. tax exemption for earnings (including capital gains) on assets supporting superannuation income streams to continue following the death of a SMSF member in the pension phase until the deceased member’s benefits have been paid out of the SMSF. This starts from 1 July 2012.

2. Superannuation proportioning rule will be amended to ensure it does not apply to transactions that are beyond the control of individual members. The proposed changes seek to provide greater certainty around superannuation fund mergers and certain transactions in response to the Stronger Super reforms.

3. Self-managed super fund (SMSF) levy will be increased to $259 per annum from 2013–14 (up from $191 in 2012–13) and levied and collected from SMSFs in the same year of income. The change will be phased in over the two years.

4. From 31 December 2012 lost superannuation accounts that are inactive for 12 months with less than $2,000 will be transferred to the ATO. The ATO will also be given additional funding to use its data matching resources to match lost accounts with active accounts.

Contact iCare Super today if you have any queries.